Ripple Labs and the United States Securities and Exchange Commission (SEC) have made significant strides in their ongoing legal dispute, as the SEC filed its final response in the remedies stage of the lawsuit.
In its recent reply to the remedies brief, the SEC challenged Ripple’s claim that it acted without recklessness and that there should be no uncertainty regarding the legal status of XRP, despite the court previously rejecting this defense.
The SEC also maintains its position on whether Ripple is likely to engage in similar actions in the future, despite the fact that Ripple has not violated any regulations since the initiation of the XRP lawsuit in 2020.
According to the remedies brief, Ripple has attempted to downplay its liability while emphasizing its cooperation with the SEC since the initial coin offering of XRP in 2013.
However, the SEC emphasized that, according to the law, even if Ripple has refrained from violations since 2020, there is still a possibility of future breaches.
The SEC argues that Ripple’s assurances about changing its behavior after the lawsuit do not justify avoiding injunctions. The SEC claims that Ripple’s claims of following legal guidance and restructuring future XRP sales based on the court’s order are misleading. The SEC states that Ripple misinterprets the order and fails to acknowledge its implications for compliance.
The response refutes Ripple’s claims about conducting sales outside the U.S. and to accredited investors, as these defenses were abandoned during the summary judgment.
Furthermore, Ripple’s claims of contract changes for on-demand liquidity sales are dismissed, as these contracts already lacked certain restrictions that were identified as violations.
Ultimately, the SEC argues that Ripple’s assertions do not negate the need for injunctions to prevent future violations.
In response to the SEC’s reply in the remedies brief, Ripple’s chief legal officer, Stuart Alderoty, criticized the SEC for its inconsistent application of the law. He expressed optimism about resolving the XRP lawsuit and suggested that international financial regulators with robust crypto licensing frameworks might find the SEC’s actions surprising.
Alderoty highlighted that the SEC’s reputation is declining and compared its efforts to issuing fishing licenses.
As the crypto community eagerly awaits the outcome of the case, analysts anticipate a final judgment around September.
Ripple is also planning to introduce its XRPL enterprise solutions to the Japanese market through a strategic partnership with Tokyo-based consulting firm HashKey DX.